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Advocating For ICO Implementation
In their recommendations for the 2024-25 Hong Kong budget, the Hong Kong Securities & Futures Professionals Association (HKSA), a notable trade group, has proposed an innovative idea. Their proposal entails establishing a specialized portal within the city dedicated solely to initial coin offerings (ICOs).
This ICO portal aims to be a secure platform that ensures token offering compliance with regulations. Its primary goal is establishing a regulated environment that effectively mitigates the risks of fraudulent ICOs.
Simultaneously, it opens doors for legitimate projects to secure funding. The proposal has caught the interest of key financial figures such as Financial Secretary Paul Chan Mo-po and Deputy Financial Secretary Wong Wai-lun, to whom the recommendations were directed.
The Association is convinced that establishing a regulated framework for ICOs could be a game changer, particularly given the possibility of a bullish market shortly. Recently, Association President Chen Zhihua unveiled a document outlining standard and innovative approaches.
These proposals advocate for the official recognition of Islamic finance within the legal framework and for forming a committee of representatives from the Islamic world.
The ICO Portal Proposal And Unfinalized Details
The concept of an ICO portal has been proposed, but the details have yet to be finalized. This portal could be a safe and regulated way for businesses to raise funds by issuing tokens and for individuals to invest in exciting blockchain projects.
Following Ethereum’s first move, ICOs became popular in raising funds in 2015. However, the trend has died down because some project founders used this method for scams or couldn’t abide by the rules for selling securities.
Hong Kong was once a central hub for ICOs, but many ICO projects left for various reasons. Notably, Hong Kong authorities removed many tokens that did not meet regulatory standards from their listings to address these issues.
Then, STOs, like upgraded ICOs, followed the rules more closely. However, they did not arouse the curiosity of Asian investors as much as expected. Nevertheless, the world of ICOs and STOs is evolving and expanding.
Thus, the proposed ICO portal could provide a solution by creating a safe environment for companies and investors.
Hong Kong Regulator Double Down On Crypto Oversights
Meanwhile, OSL Compliance Exchange, a licensed virtual asset platform, has noticed increased financial technology providers’ interest in integrating tokenized platforms with banks. This integration could benefit the virtual asset industry by capitalizing on the public’s trust in banks.
Hong Kong’s recent crypto regulations, which went into effect in June, signaled a paradigm shift by allowing retail investors to trade virtual assets. Previously, only professional investors with at least $1 million in bankable assets were allowed to sell digital assets.
However, the Securities and Futures Commission (SFC) now issues licenses to crypto exchanges as part of the new regulations. Consequently, OSL and Hashkey Group were the first to receive these licenses in Hong Kong.
Furthermore, they have collaborated with ZA Bank, the city’s largest online-only bank, to provide crypto-to-fiat services. The JPEX scandal prompted a response to tighten oversight, while recent regulatory changes allow for a broader range of investors to enter Hong Kong’s cryptocurrency market.
With this move, this region can soon reclaim its status as an ICO hub.
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